Color Kinetics Inc B Case Study Solution and Analysis
Intro
NASCAR (National Association for Stock Car Auto Racing) is a company carrying out series of Stock Car racing in United States and acting as a sanctioning body for driving the guidelines for Stock Cars and truck Racing. 2) Stock Vehicle Racing by NASCAR is the 2nd largest viewer sport, with greatest number of sponsors. 1) The other sources of earnings for Color Kinetics Inc B Case Study Analysis includes; 10% of the total earnings from television rights, approving fees i.e. $1-2 million per race, and licencing NASCAR brand name to companies.
NASCAR has a closed corporate culture with the non-interventionist technique. Nevertheless this non collaborative approach brings tensions in the sport. The building of Cars and truck of Tomorrow by Color Kinetics Inc B Case Study Help, with an intention of security for the motorists, brought different tensions amongst the stakeholders of the sport.
The interaction audit, performed in 2010, exposed that in spite of the fact that the organisation extremely rely on the interactions between its stakeholders, there was no recognizable service communication strategy. (
The audit pointed out various lacking of NASCAR in terms of absence of internal integration, lack of fan management method and lack of digital and social media of marketing.
Color Kinetics Inc B Case Study Help viewers was highly loyal to the sport and the brands related to the NASCAR, making it appealing for sponsors and corporate online marketers.
Issue Declaration.
The business is presently facing the problem of decreasing rates of attendance at racing tracks and rates of television viewers. This can put a substantial effect on its profits from sponsors, media rights, and from other sources of revenue.
Situational Analysis.
The business was rather effective till 2005 with its standard marketing strategies, but quickly after 2005 the business begins facing numerous problems consisting of decrease of its fan base. Numerous external in addition to internal factors are accountable for the decline. Internal elements include; inadequate investment in social media and other digital medias of.
Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their children and produce generational loyalty. But the household system in America was changing resulting in decrease of influence of married male fan base over their youngsters. In addition to it understandings about automobile was also changing with viewing automobile a car to reach at point B from point A, instead of as an enjoyable project. Other challenges for Color Kinetics Inc B Case Study Analysis includes the shift of its fans to other sports as they were enhancing their fan's experience allowing access to their broadcasts out of the homes through jumbo turns, Wi-Fi access, etc. These all obstacles were tending the business to modify its marketing methods.
SWOT Analysis.
Strengths.
NASCAR core proficiencies includes it has rights of dictating guidelines as approving body. Rules and guidelines relating to expert stock car racing are determined by NASCAR like if any team with required abilities and resources can get in into races by following rules and policies determined by NASCAR. All the occasions of NASCAR are sponsored by corporates since of greatest brand loyalty of fans toward brand names marketed by Color Kinetics Inc B Case Study Analysis.
Weaknesses.
Weak points of NASCAR includes its close culture which is non collective. Color Kinetics Inc B Case Study Solution develops Cars and truck of Tomorrow without cooperation so result is that drivers did not like that idea. It was likewise discovered that NASCAR had no effective strategy for organisation interaction.
Opportunities.
NASCAR typically used to rely on standard media sources like local paper for publicity of its sports. NASCAR also came to understand from these standard media outlets that sport was challenging to cover. When sports fans were asked relating to popular celebrities and stars then NASCAR chauffeur was not found even in leading twenty responses.
Hazards
Economic down turn was experienced in late 2000 which can be risk for NASCAR due to the fact that if there is economic down turn then individuals would be having less return on financial investment. Economic down turn also results in boost fuel costs which likewise impacted NASCAR. Now if NASCAR make substantial financial investments in new sections which are based on brand-new clients then it may face unfavorable remarks from its core fan base.
Porter's 5 Forces Analysis
Porter's 5 forces is a design that is used to analyse market in which company is working. It helps in identifying what are strengths and weak point of any particular industry. It suggest that every industry is different from one another. Because NASCAR's bottom line i.e. net revenue is greatly depends on this, it is crucial to understand industry in which company is working. There are 5 forces that are used to identify success, strength and attractiveness of Color Kinetics Inc B Case Study Help service.
Competitive Rivalry
These chauffeurs can go versus NASCAR if they got much better chance in terms of prizes and tv exposure. If viewers delight in other race cars and trucks and drivers more than NASCAR then audiences can shift to those other fascinating automobiles and motorists. NASCAR might be having threat from its two direct competitors that is Formula 1 and Moto GP.
Supplier Power
The supplier power suggests the number of suppliers are offered in market and what is the expense associated with provider if business shifts from one supplier to another. Because chauffeurs with needed resources and skills are limited, in this industry there is supply monopoly.
Purchaser Power
In the case of NASCAR customers are its viewers. Viewers can switch to other rivals quickly due to the fact that viewers will having low switching expense.
Danger of Replacement
Substitutes are referred as alternatives. The replacements in this case can be other home entertainment indicates like audiences can shift to other sports. There are large range of alternatives are available in this circumstance which suggests that threat of alternative is high.
Threat of New Entry
In the case of NASCAR danger of new entry is low. They need to construct cars and racing tracks and likewise needs to pay hefty quantity to chauffeurs for switching.
PESTEL Analysis
Political
It can not be concluded from case study that there would be change in resource allotments. NASCAR had got gain from lower taxation policies which results in increasing in revenues. So they made heavy investments in the research and advancement. As NASCAR is working in different markets so it requires to deal with various regulations. It is also noted that Color Kinetics Inc B Case Study Solution has dealt with increased scrutiny regarding regulative. Every government has different top priority so NASCAR has to be gotten ready for it as priority can be moved to other sector.
Cost-effective
Economic factors includes taxation rate, currency exchange rate, financial efficiency of that specific company, conditions of labour market, inflation rate etc. If there is government intervention in the marketing and sales sector, fortunes of the NASCAR and its competitors can be affected. NASCAR can take advantage of abilities of employees to create brand-new opportunities and enhance existing opportunities.
Social
Every society is different from each other. Each has different social worths and standards. It helps in understanding regarding society and preference of consumers. Social elements includes customs, culture, mindsets towards particular product and services, demographics, norms, interests etc. It can be concluded that advertising through other methods instead of standard (i.e. paper) can be preferred in this society.
Technical
Innovation has effect on nearly every service. It consists of innovation in service method. In this case of Color Kinetics Inc B Case Study Help it can be kept in mind that companies are heavily investing for research and development. NASCAR needs to likewise work on its media rights policy with Turner Broadcasting System.
Legal
Because every nation has different legal terms and conditions, Legal plays a crucial role in every country. Color Kinetics Inc B Case Study Solution requires to be ensure that they safeguard their legal rights in every county so any business does not hurt to its legal rights.
Environmental
Ecological aspects are also important for every company. Due to the fact that usually federal governments do not permit those business which can hurt to environment. These environmental factors consists of laws relating to pollution, climate change, safe garbage disposal, policies concerning insurance and so on. NASCAR needs to make certain that its vehicles are not producing contamination more than appropriate level.
7 P's of Marketing
Product
The items of Color Kinetics Inc B Case Study Analysis in its item portfolio are; racing occasions tickets, racing tracks, sponsor's marketing, media rights, licencing NASCAR brand name, sanctioning guidelines for races and ad-space to business marketers during broadcast of NASCAR races. (Hanlon, 2018).
Price.
Prices strategy of NASCAR for its race events tickets is based upon the place and importance of the racing occasions. In addition to race occasions tickets, NASCAR also charge numerous service fees to its stakeholders and earns earnings. For example it charged approving charges of $1-2 million per race on average in 2005.
Promotion.
Promotional method of NASCAR is extremely based upon its fan base. A strong fan base share its fandom with others and increase the number of audiences for NASCAR races.
Place.
NASCAR have its racing tracks in numerous cities in United States. The most essential tracks of NASCAR consists of Atlanta Motor Speedway in Georgia, Vehicle Club Speedway in California and Darlington Raceway in South Carolina. It attempts to perform its races in the majority of the cities in United States to understand across the country appeal.
Individuals.
Nestle people method is consisted of supplying much better experience to its audiences, its fan base and to all of its stakeholders. People are an important aspect of Color Kinetics Inc B Case Study Analysis A marketing method as its events are the source of home entertainment for crowd. Its individuals technique includes efforts to provide better experience to its Fans, Race Drivers, Crew, Occasion Organizers and so on, all of which come under people strategy of NASCAR.
Procedures.
Several organisation processes are needed to perform racing occasions in an effective method. These procedures consist of; proper schedule of time, plan for viewers, offering tickets, plan of space for sponsors, managing logistics and so on. These all processes contribute I developing NASCAR image, improving spectators experience and increasing fan base.
Physical Evidence.
Most important physical proofs for the NASCAR includes the presence of its racing tracks, stock cars and trucks and racing occasions. In addition to it, its retailing brand names consisting of t-shirts, caps, goodies and so on, also function as a physical proof for NASCAR.
Product Life Process Assessment.
The racing occasions by NASCAR was presented on June 19, 1949. At the very first stage competition for NASCAR was low, as the competitors drove the cars and trucks comparable to the cars driven by normal individuals.
Growth.
After conducting its first race effectively the company moved towards constructing its own tracks. The first Color Kinetics Inc B Case Study Help based track, namely the Darlington Raceway track, was initiated in 1950 in South Carolina. It was followed by establishment of more raceways consisting of Daytona International Speedway, which was opened in 1959. After the development of racing tracks the company moved towards relaying its races on television in 1979. The very first occasion relayed on tv was flag-to-flag protection of Daytona.
In 1972, William France Jr., became the president of NASCAR and n about 3 decades, he changed NASCAR from a regional Sport popular company into one with global fan base. He initiated a brand-new age of rewarding sponsorships and television agreements for NASCAR.
Maturity.
The maturity period for NASCAR started with the efforts of William France Jr., with the company having wide variety of profits sources. The company has about 500 sponsors with transmitting its occasions in about 150 countries. The company has a great deal of tracks in most of the cities of United States.
Decline.
The decrease in the company's offerings started after 2005 with average presence rate per race decreased by 22% from 2005 to 2010 and tv viewership rate decreased by 30% from 2005 to 2010. The significant causes of decrease consist of the financial crisis of 2008, which increased the cost of coming to tracks for audiences due to increasing fuel costs, and the moving of its fan base towards other sports.
Market Division.
The marketplace division of Color Kinetics Inc B Case Study Analysis can be divided into 4 sections; Geographic, Demographic, Psychographic and Behavioural. (Dutta, 2018).
Geographic.
The geographical division of Color Kinetics Inc B Case Solution is based upon the geographical existence of its tracks in various states and cities in United States, and the television broadcasting of its events in various nations. The company has 23 tracks in about 20 states of America and has television broadcast through various Medias i.e. TNT, ESPN, ABC and Fox, in about 150 countries.This large geographical division supplies the company regional as well as international fan base.
Market.
The demographic segmentation of NASCAR is likewise highlydiverse based upon the gender, income and age of the consumer. Its present fan base is majorly comprised of male married fans with a typical age of 47 years and an earnings around $30-50 thousands. However currently NASCAR is trying to increase its target audience to the young growing population and kinds too. To increase the demographic section of its market NASCAR should modify its marketing techniques to draw in more age and lower its rates to enter in the market section with a low typical income.( htt1).
Psychographic.
The psychological attributes of most of the fans are rather comparable. NASCAR has a fan base with a loyalty. Once in a week, NASCAR fans view it compulsive to purchase tickets and see the races. 71% of them prefer to purchase products with a NASCAR brand name. They are quite extrovert and are willing to mingle with other fans while racing. They desire quality racing with low price at convenient area. Although Color Kinetics Inc B Case Study Analysis has actually tried to increase the quality of its racing by presenting stage racing, they likewise have tried to lower prices and make the event easier by introducing live racing.
Behavioural.
Behavioural division of Color Kinetics Inc B Case Study Help is based upon the behaviour of fans in regards to watching the race survive on the tv or by going in the events. Currently, the fans preference is towards seeing the race at home on tv instead of going, as the customer experience at NASCAR tracks is not beneficial along with expensive. This choice makes the rates for participation lower than the rates for television audiences. NASCAR needs to alter the behaviour of its fan base by presenting qualitative services at its tracks.
Target audience.
Hispanics.
Among the potential target market of Color Kinetics Inc B Case Study Solution was Hispanics; the young and growing population of United States. The market section has excellent prospective for NASCAR as the population was growing at a higher rate and it was anticipated to become thrice after forty years and the section has increasing wealth rate with about $1 trillion of wealth in 2014. The segment shows affinity with cars and truck culture, but require a more focused marketing towards inviting the segment towards racing.
Kids.
Kids are also one of the potential target audience section for NASCAR, as they are more linked socially than other groups. Developing fan base amongst kids can supply a prospective boost in the number of fans for racing due to their connection. Kids spend the majority of their times in playing and using mobile phones computer game. Car racing video games established by Color Kinetics Inc B Case Study Analysis can be a potential source of gaining attention of kids towards NASCAR track racing. NASCAR's digital functions related to kids are not capable of acquiring the attention. NASCAR requires more attention towards customizing and improving its digital features to bring in the kids target audience.
Generation Y.
Generation Y target audience includes those who spent 5 times more resources on discretionary expenses i.e. buying tickets for racing events, than others. This big expenditure makes the sector potential for NASCAR marketing method of increasing its fan base. The market section is also easy to technique as 81% of the Y Generation consumer uses Facebook every day and the use is twice of utilizing television and radio. The market sector views sports as an affair, rather than adherence to sport. The marketplace section considers NASCAR as an organization doing not have in producing a multiculturalism environment. Color Kinetics Inc B Case Study Analysis must take numerous actions to improve the experience of Generation Y customers in its events.
5 C's of Marketing
5 C's of marketing helps in taking choices relating to marketing. These 5 C's needs to be analysed correctly for taking any marketing choice. These 5 C's stands for Climate, Business, Collaborators, Customers and Rivals.
Climate/Context.
It needs to make PESTLE analysis in order to understand climate or context in which NASCAR is working. PESTLE represents political, economic, social, technical, ecological and legal and is stated above.
Business.
NASCAR is a car racing business with having USP of high quality auto racing with an international structure. Its sector is sports team and events. Its target audience is males in the age group of 15-60 years. Company has actually closed business culture and having non-interventionist approach.
Collaborations.
Collaborations includes distributors, providers and alliances of NASCAR. NASCAR utilized to get pay check of around $15 million annually from Turner Sports. NASCAR had to get approval from Turner Sport if it desire to develop its Facebook page, twitter account or even mobile application.
Clients.
The customer of Color Kinetics Inc B Case Study Analysis are its audiences. They target clients with having age of 15-60 years. Fan base of NASCAR comprised of married males with a typical age of 47, which passes their fandom to their youngsters and develop generational loyalty.
Competitors.
The direct competitors of NASCAR are Solution 1 and Moto GP. Groups normally represents sponsors in NASCAR and the medium of marketing is chauffeurs. It can be said that drivers and race automobiles are competitors. These chauffeurs can break Color Kinetics Inc B Case Study Analysis if they improved chance in terms of rewards and tv direct exposure.
Marketing Techniques.
1. Developing and Keeping Facebook Page.
One of the possible target markets sections for NASCAR is Hispanics which is the growing population section of USA but regrettably NASCAR had been not able to bring in the this targeted sector. It must develop a Facebook page containing the info regarding the races and the locations of tracks to make the consumer informative about the core operations of NASCAR.
2. Establishing and Upgrading Accounts of Key Drivers.
Color Kinetics Inc B Case Study Analysis chauffeurs has a low star power as compare to gamers of other sports. The bad contacts with fans result in less tourist attraction of viewers towards the racers and a low star power. Star power is an important element for bring in audiences towards tracks and towards tv.
3. Developing New Games and enhancing existing video games for kids.
In order to attract these kids, NASCARA should enhance its current racing video games by introducing customization in the vehicles i.e. changing colours, selection of speed, presenting group racing in the video game, utilizing better graphics related to the racing tracks and introducing numerous levels in the game. All these modifications in the existing video game would offer much better experience to kids.
Along with it, NASCAR must also construct brand-new video games connected to racing like kids racing with kids characters as motorists, animation racing with racing in between different animation characters with a choice of selecting the preferred cartoon character for the kids. These techniques would make it possible for the business to attract one of its possible target segments.
4. Introducing multiculturalism at events.
NASCAR events are comprised of fans with extremely few cultural diversity, due to cost of arrival in events, making it unattractive for the customers viewing sport occasions as social occasions i.e. Generation Y clients. As the Generation Y consumers are a prospective target market for NASCAR, therefore the business must take particular steps to attract this possible target market.
5. Improving Customer Experience at Tracks.
NASCAR must work on facilities and features at tracks since on the race day viewers got dissatisfied. Audiences have numerous expectations from Color Kinetics Inc B Case Study Help due to the fact that in very same market other business are providing much better services than NASCAR. IF NASCAR don't work on this issue then its fans may moved to its competitors.
Marketing Spending plan
Marketing budget plan made on the basis of the above techniques for the period of 5 years from 2011 to 2015, shows the expense associated information for the marketing techniques. It can be seen that strategy 5 of improving client experience at tracks would need greatest preliminary investment and cost and technique 4 of introducing multiculturalism will require least expensive preliminary financial investment with lowest even more per year cost.
NOTE: The worths about cost are presumed on logical basis due the lack of realities and figures related to cost in the event research study. Inflation rate of United States is presumed to be 10%.
Suggestions.
On the basis of deep analysis of the external and internal aspects of Color Kinetics Inc B Case Study Help triggering the decline of television viewership rate and participation rate at tracks, the above marketing techniques are advised to NASCAR to increase its fan base in long run. These methods would handle internal factors like poor consumer experience at tracks, insufficient social media marketing, incapable digital medias like video games, lack of culturalisms at tracks and so on, along with with external factors like moving of fans towards other sports, demographical modifications in America and altering family life styles.
